Decades after the internet’s debut, millions of Americans still lack access to high-speed broadband service. The Broadband Equity, Access, and Deployment Program (BEAD), part of the US government’s 2021 Infrastructure Investment and Jobs Act, provides $42.45 billion in federal funding to expand high-speed internet service across the country. By the end of 2024, all US states will mark an important milestone: they will be in a position to begin their subgrantee selection programs, competitively granting their share of the funds. This presents unprecedented opportunities and challenges for state broadband offices.
In an interview with McKinsey, five leaders of state BEAD programs share their perspectives on lessons learned so far and future plans for broadband implementation: Eric Frederick, chief connectivity officer, state of Michigan; Amy Grenfell, COO, Wyoming Business Council; Kevin Hughes, administrator, District of Columbia State Broadband and Digital Equity Office; Peter Voderberg, chief, BroadbandOhio; and Elaina Zempel, former broadband manager, Wyoming Business Council. The following are four key takeaways from the discussion.
1. BEAD may represent not the ultimate destination but rather a robust foundation for achieving universal connectivity
“I feel confident that this is a once-in-a-lifetime opportunity for states to build out the infrastructure that is critical not just for today but for our future,” says Amy Grenfell. Eric Frederick echoes this view: “I can’t tell you how many broadband plans for Michigan I’ve written over the last 13 or 14 years,” he says. “It’s a lot. But we’ve never had an opportunity like we have with BEAD to drive what we’re going to do with it.”
Infrastructure is one aspect of the equation, but digital equity may also be regarded as a foundational element for both current and future investments. Kevin Hughes states that workforce development in the District of Columbia is a key component of reaching digital equity—and that the BEAD program can help achieve it. “We want to be able to train our residents in cybersecurity, AI, and the workplace of the future,” he says. “Then we’re going to make sure that folks can benefit not just from the social media aspect of connectivity but also from economic empowerment. Their lives and livelihoods are going to improve because of broadband.”
Digital equity requires digital literacy, which enables people to use technology effectively. Without digital literacy, residents and businesses may not be able to fully harness the benefits of internet access. For instance, Peter Voderberg highlights a case in northwest Ohio where an entrepreneur was initially running a business using only a phone, which was inefficient. “We were able to fund a training program where, if you went through eight weeks of a class, you got a laptop at the end,” says Voderberg. “[The entrepreneur] now has multiple employees working for her. Just the laptop and the experience she had from a training course have allowed her to create a business in northwest Ohio that didn’t exist previously.”
2. Each state may approach BEAD differently to account for a range of challenges that could emerge during implementation
With different topographies, logistical issues, and relationships with service providers, individual states have unique situations. In a worst-case scenario, states could exhaust all their BEAD funding and still have areas within the state that lack connectivity. Our interviewees agree on overall mandates such as getting bids to provide service to all unserved or underserved locations and meeting deadlines to select providers. But their specific considerations vary.
“The timing issue that I see is the actual construction of these projects,” says Frederick. “We have shortened construction seasons—the [Michigan] weather does not help any when it comes to building. [Having only] four years to build all these projects is going to be rough.”
Wyoming’s large empty spaces pose an obstacle, points out Elaina Zempel: “We want to serve as many people in Wyoming as we can with fiber. But we have six people per square mile, and we have a lot of mountain passes. We’re talking about going down a road for 80 miles and having one customer.” Getting construction permits could be another challenge, given the amount of public property in the state. “We have one county that is 97 percent public lands and another that’s about 73 percent,” Zempel says. “If permitting is not timely, we’re never making the deadline.”
For Kevin Hughes, sustainability is key: “Once the grants are over, we want to make sure that these projects continue the good work that they’re doing,” he says. “We are looking to create smart partnerships with nonprofits, government agencies, and, obviously, internet service providers. The timeline is going to be tight once that bell rings.”
3. Stakeholder engagement helps during planning but assumes even greater significance after implementation begins
Actively encouraging user and stakeholder feedback, creating a sense of community, and communicating and demonstrating progress are vital to the success of implementation plans. “If there’s a digital-equity coalition in your state, please go see them,” suggests Voderberg. “Show them that you’re participatory and that you want their input.” Kevin Hughes adds, “Going out into the Washington, DC, community and interfacing with the wide variety of people who live here is near and dear to my heart. You’re touching people where they live, and you’re showing them how this can have an impact on their lives.”
The BEAD initiative for Michigan focuses on “listening tours” where members of the public vote on and rank what they see as the most significant issues and obstacles to implementation, according to Frederick. He notes that when he was speaking at a policy conference in northern Michigan, the roughly 400-strong audience broke out into “raucous applause” when he mentioned that thousands of consumer challenges to the Federal Communications Commission’s broadband map had been upheld. “It felt like we were doing something for these people, and they appreciated it.”
Stakeholder engagement may become increasingly crucial during the next year as internet service providers (ISPs) come on board. Maximizing provider involvement could be essential to foster competition and ensure efficient allocation of BEAD funding to cover all eligible areas. During project implementation, states may need to engage closely with providers to monitor their progress and assist in overcoming any potential roadblocks.
4. Staying agile is essential throughout the BEAD project—it’s not just a one-time activity
Our interviewees stress that BEAD has required them to react on the fly as the program takes shape. Going forward, they anticipate more challenges as they select subgrantees and support ISPs in building the infrastructure. For instance, a state may not be able to gather a sufficiently broad coalition of ISPs to meet the universal coverage requirements of the BEAD program. This is where staying on good terms with the National Telecommunications and Information Administration (NTIA) can help. “We have a responsibility to make sure that we’ve got a solid relationship with the NTIA and can serve as the interpreter for the private sector carriers for ultimately delivering upon this mission,” says Amy Grenfell.
Another strategy is to anticipate where things may go wrong and act accordingly. Broadband program leaders who stay on their toes and who can nimbly navigate any unexpected challenges are likely to be most successful, Eric Frederick notes. “The priority is making sure that once those projects are set, there is nothing standing in our way that doesn’t need to be, and making sure that our grantees can be successful—because their success is our success,” he says.
Broadband access affects multiple aspects of everyday life, from shopping to education to healthcare. The digital divide can cause many people to fall behind socially and economically. Leaders who are implementing the US government’s BEAD initiative face many challenges but also have a singular opportunity to achieve universal availability of high-speed internet services.
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